W-B spokesman: Payless paydays are possible

Wilkes-Barre may not be able to pay its employees later this month, said city spokesman Drew McLaughlin.

McLaughlin said the city could withhold the entire two weeks' worth of pay or reduce the paychecks of its roughly 260 employees that are scheduled to be issued Dec. 21, the last pay day of the year.

"We're doing everything we can to avoid a payless payday," McLaughlin said. "It's only an outside possibility but given it's a possibility, we wanted to give them (city employees) an advanced warning."

McLaughlin said the city still faces a $1.9 million deficit, the majority of which is caused by an outstanding debt from former county tax collector Centax. In addition to salaries and overhead, the city must make several debt payments by the end of the year, including an already delayed $3 million short-term loan.

McLaughlin said the city doesn't know if potential withholding of paychecks would be partial or entire, but said the decision would equally affect all employees.

"From the mayor and council members to employees on the street; we certainly wouldn't pay one department and not the other," McLaughlin said.

Employees would eventually receive all of their earnings - and possibly interest - but McLaughlin said he doesn't know how long that would take.

The city could save about $500,000 by withholding salaries from an entire pay period, McLaughlin said.

McLaughlin said the city is still optimistic it will receive the $1.5 million currently owed by Centax, which he said could determine if the city will be able to pay employees. The city received several hundred thousand dollars from Centax's debt on Thursday, McLaughlin said.

McLaughlin said the administration will decide whether it needs to withhold the salaries later in the month.

chong@citizensvoice.com, 570-821-2052

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